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2. In a short sale, the period of time between the borrowing of securities and the return to their owner. That is, the holding period is the entire time elapsed for all the transactions of a short sale.
A holding period is the length of time you keep an investment.
In some cases, a specific holding period is required in order to qualify for some benefit. For example, you must hold US savings bonds for a minimum of five years to collect the full amount of interest that has accrued.
(1) A time period important in the law of adverse possession,with its own peculiar rules for calculation. See adverse possession for more information. (2) A period of time one owns property, important in tax law for determining tax rates and benefits and for disallowance of some benefits.
• Property exchanged in a 1031 exchange by related parties has a 2-year holding period before it can be sold; otherwise there will be adverse tax consequences.
• Banks have a 21-day holding period before sending taxpayer bank deposits to the IRS pursuant to a garnishment.
• Property sold after a holding period of 1 year or less will result in short-term capital gains or losses.
• Property sold after a holding period of more than 1 year will result in long-term capital gains or losses.
• Property sold after a holding period of more than 5 years will result in super-long-term capital gains or losses.
• Property acquired by inheritance will be treated as if it were held for longer than 1 year.